
My first day of a short visit to Portland found me snacking at Clyde Common and sipping local Pinot while perusing the inspired wine list. I realize that I should be seizing the opportunity to drink as much wine from the nearby Willamette valley as I can handle, and this will hopefully come with a day trip tomorrow, but I couldn’t resist François Mikulski’s ’06 Bourgogne for $38.
François’ family is relatively new to Burgundy – his father fled Poland in ’39 and he was born in ’63. Domaine Mikulski, from the town of Meursault, was only created in ’92 after François studied viticulture in France and spent some time with Californian producers Calera and Littorai. This is his entry level red from Pinot Noir.
Sitting there and enjoying this wine with dinner made me a little depressed for my inevitable return to Vancouver. This is a simple, honest Pinot – fruity, a touch earthy with brilliant acidity – good wine from a tremendous producer. Its whole purpose is to be an accessible option to open up and put on the dinner table. What would this bottle cost if it was on a wine list in Vancouver? $70, maybe. No fault to the restaurants; with a much higher cost from government taxes, that would be low to standard markup. Who is that accessible for?
I’ve just read Anthony Gismondi’s article in the Vancouver Sun about exorbitant wine taxation in BC care of our friends in the provincial government (kudos to Anthony for continuing to make these points mainstream) and found this all pretty relevant. The kicker here is that, as customary in Oregon, this bottle of wine cost me $38 even… free of any sales tax.
The irony is that Gismondi is pictured tasting VQA wines, which are not subject to provincial liquor markups. He also has an incorrect interpretation of the law. A purchase order is, presumably, a contract. The LCBO is not price fixing, they are making low prices a term of the contract with any supplier. That is the same as a large corporation contracting with a supplier with a clause stipulating that the supplier will not supply any competitor with the supplied product at a lower price. That’s freedom of contract, not government regulation. That said, since government regulation eliminates private competition in Ontario, the LCBO is given a tremendous amount of bargaining power, so much so that many economists might consider Ontario (and the impacts on Canada) to be a distorted market place.
I should also say that it’s great that Mr. Gismondi is pointing out the terrible tax situation in BC, because it is attrocious. I note, however, that he doesn’t discuss how the new markup is several percentage points higher (I believe around 6%) than the previous markup, meaning it is not just compensating for the HST, but also raising even more revenue. I would also note the provincial government has projected increased revenues from the BCLDB of around $900 million. Where else will that come from other than raised taxes.
Thanks for your comments and more detail Shea. I eagerly await paying more taxes on my return to BC. Plus I just read Mark Hicken’s post about the govt’s tentative 2 year deal with the BCGEU…